Asian shares saw a mixed performance on Monday, with Shanghai experiencing a notable gain of 1% following positive manufacturing data from China. However, Sydney and Hong Kong remained closed for the Easter Monday holiday.
The Tokyo stock market, represented by the Nikkei 225, faced a decline of over 1.2%, dropping to 39,883.96 points. This decrease came in the wake of the Bank of Japan’s quarterly survey, which revealed a decline in sentiment among large manufacturers for the first time in a year.
Conversely, the Shanghai Composite index surged by 1% to reach 3,072.29 points. China’s National Bureau of Statistics released encouraging survey results, indicating a robust official manufacturing PMI of 50.8 in March, marking its strongest reading since March 2023. Additionally, the Caixin/S&P Global China manufacturing purchasing managers’ index hit 51.1 in March, its highest level since February 2023.
According to Wang Zhe, a senior economist at Caixin Insight Group, Chinese manufacturers have ramped up production and purchasing levels, buoyed by improved optimism and supportive government policies aimed at stabilizing growth. However, Zhe emphasized the need for more efficient and higher-quality growth, given challenges in employment and inflation pressures.
In other parts of Asia, South Korea’s Kospi edged up by 0.2%, while India’s Sensex rose by 0.7%. The SET index in Bangkok saw a modest gain of 0.1%.
Meanwhile, markets in the U.S. and Europe were closed on Friday, following Wall Street’s steady ascent to record highs earlier in the week. The S&P 500 continued its winning streak, rising to yet another all-time high, while both the Dow Jones Industrial Average and the Nasdaq composite also set records.
Looking at currency markets, the U.S. dollar strengthened against the Japanese yen, while the euro experienced a slight decline. The ongoing strength of the U.S. stock market has been supported by solid economic performance and expectations of interest rate cuts by the Federal Reserve to combat inflation.
In commodity trading, U.S. benchmark crude oil prices rose slightly to $83.43 per barrel, with Brent crude also experiencing a modest increase to $87.25 per barrel. These movements followed gains recorded before the Easter holiday weekend.